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Ernst Is Trying to Evaluate Some Options for a Firm

Question 15

Multiple Choice

Ernst is trying to evaluate some options for a firm.However,he can't remember how to compute e−Rt.Can you help him? If the rate is 4.38 percent and the time period is 6 months,what is the value of e−Rt?


A) .9087
B) .8087
C) .9952
D) .8476
E) .9783

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